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Cleveland-Cliffs (NYSE:CLF) +1.8% in Tuesday’s trading as Seaport Global upgrades to Buy from Hold with a $16.50 price target, based on “a tactical call around the current steel price cycle and mounting supply-side response.”
Seaport analyst Martin Englert cuts his outlook for Q3 EBITDA given the recent down cycle in steel prices, and thinks it is probable that consensus will lower estimates in the coming weeks, but “the good news is that the disciplined and robust supply-side response is still percolating through the market and will become more evident in the near term.”
Even as Englert reduces his Q3 earnings expectation with steel prices falling, he sees lower production helping prices, and earnings, down the road.
Cleveland-Cliffs (CLF) shares have gained nearly 6% in two days since Canada announced a 25% tariff on steel from China, the world’s largest producer of steel, effective October 15.
